In her defense, Paulina was never got a chance to be treated as a woman until then. She also understands that her build and appearance is quite masculine and not the typical perception of cute.
I feel bad for the Emperor, but I'm glad he considered and out her feelings first. He knows she doesn't love him the same way he loves her so hes trying not to burden her with his feelings. That's good! He's not abusing his power which I sometimes see in stories where the more powerful romantic interest will pull rank to get the person.
I know there’s a whole argument to be made for why they shouldn’t get together since their relationship is a lot more than just people who like each other....but GOD DAMN IF I DON’T WANT IT